S&P: AmerCable to positive

Standard & Poor's said it revised its CreditWatch implications on AmerCable Inc. to positive from negative following news that the company had agreed to be acquired by Nexans SA.

Amercable is being acquired by a higher-rated entity and there is an expectation that its existing debt will likely be refinanced by Nexans at the closing of the transaction, S&P said.

Under the terms of the agreement, Nexans will pay $275 million in cash for AmerCable, funding the acquisition out of existing available cash, the agency said.

AmerCable's existing debt will likely be repaid by Nexans as part of the acquisition, S&P added.

The B- rating on AmerCable reflects the company's vulnerable business risk profile and highly leveraged financial risk profile, the agency said.

In resolving the CreditWatch listing, S&P said it will monitor the progress that the companies make toward closing the transaction.

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